HSBC Subsid Final Results

HSBC Holdings PLC
15 February 2002



HSBC Bank Malta p.l.c. Preliminary Profit Statement for the year ended 31 December 2001

(Published in terms of Section 6.05.06 (iii) of the Bye Laws of the Malta Stock Exchange)

                                                                         Group                          Bank

                                                                       2001            2000            2001         2000

                                                                      Lm000           Lm000           Lm000        Lm000

Interest receivable and similar income                              82,588          84,333          76,571       78,891

Interest payable                                                   (51,721)        (53,933)        (52,681)     (54,644)

Net interest income                                                 30,867          30,400          23,890       24,247

Other net operating income                                          20,424          17,622          17,227       15,337

Total operating income                                              51,291          48,022          41,117       39,584

Operating expenses                                                 (28,551)        (26,310)        (26,879)     (24,666)

Net amortisation of goodwill                                          (287)           (300)           (205)        (205)

Operating profit before impairment losses and

provisions                                                          22,453          21,412          14,033       14,713

Net impairment losses                                               (5,842)         (4,684)         (5,670)      (4,558)

Provision for contingent liabilities and other charges                 (15)             49             (15)          49

Operating profit before exceptional item                            16,596          16,777           8,348       10,204

Exceptional item                                                      (834)         (2,855)           (834)      (2,797)

Profit on ordinary activities before tax                            15,762          13,922           7,514        7,407

Tax on profit on ordinary activities                                (2,520)         (3,473)         (2,582)      (1,975)

Profit on ordinary activities after tax                             13,242          10,449           4,932        5,432

Profit attributable to minority interests                                -            (109)              -            -

Profit for the financial year attributable to

shareholders                                                        13,242          10,340           4,932        5,432

Earnings per share                                                    36.3c           28.3c           13.5c        14.9c

Dividends, net of income tax                                         3,083           2,608           3,083        2,608

Balance sheet extracts as at                                      31/12/01        31/12/00        31/12/01      31/12/00

(Figures in Lm millions)

Total assets                                                         1,456           1,415           1,409         1,349

Loans and advances to customers                                        878             848             733           717

Amounts owed to customers                                            1,223           1,183           1,069         1,035

Shareholders' funds                                                    104              93             104            94


The group profit and loss account and balance sheet for the year ended 31
December 2000 have been restated as a result of the adoption of an accounting
policy for the recognition of the value of in-force life assurance business.

Review of group performance

The published figures have been extracted from HSBC Bank Malta's group audited
accounts for year ended 31 December 2001 as approved by the Board of Directors
on 15 February 2002.

In 2001, HSBC Bank Malta and its subsidiaries generated a profit on ordinary
activities before tax of Lm15.8 million which represents an increase of Lm1.8
million, or 13.2 per cent when compared to the restated profit for the year
ended 31 December 2000.

The restatement of comparative amounts results from a change in accounting
policy to recognise the value of in-force life assurance business. The impact on
the 2000 comparative figure is to reduce other operating income by Lm1.1
million. Additionally, from 1 January 2001 the group adopted IAS 39 - Financial
Instruments: Recognition and Measurement. The principal effect on the financial
statements relates to the basis of valuation of certain classes of financial
assets which has been accounted for by increasing the opening balance of
shareholders' funds by Lm2.5 million.

Profit attributable to shareholders was Lm13.2 million, an increase of Lm2.9
million (28.1 per cent) over the previous year.

Net interest income of Lm30.9 million was Lm0.5 million or 1.5 per cent higher,
when compared to 2000. Other net operating income rose by Lm2.8 million or 15.9
per cent and operating expenses increased by Lm2.2 million or 8.5 per cent, on
2000 levels.

The group's cost to income ratio improved to 57.3 per cent from 60.7 per cent in
2000.

Net impairment losses during 2001 were Lm5.8 million, an increase of Lm1.2
million over the previous year.

The directors have proposed a final dividend of 8 cents per ordinary share that,
together with the interim dividend of 5 cents, results in a total distribution
of 13 cents. This represents an increase of 2 cents per share (18.2 per cent)
over the previous year's dividend distribution. The dividend is covered 4.3
times by attributable profit (2000: 4.0 times).

The dividend, which will be approved at the next Annual General Meeting, will be
paid to shareholders who are on the Register of Members of the company on 20
February 2002.



Issued by HSBC Bank Malta p.l.c.22548 - 02/ 2002



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